The Central Bank of Eswatini (CBE) has taken steps to recover money lost by Ecsponent investors, with a focus on assets allegedly moved to South Africa. The bank has funded legal, forensic, and asset-tracing efforts, including engaging Senior Counsel in the Western Cape and a South African-based forensic firm. This follows a report presented to the House of Assembly Finance Committee by the CBE-appointed Ecsponent Recovery Team, chaired by Sydney Jele.
The CBE's report details the costs and progress of the recovery exercise, which may require substantially more money if investigations are extended beyond South Africa. A preliminary quotation from specialist investigators indicates that a comprehensive forensic asset-tracing exercise covering South Africa, Botswana, and other jurisdictions could cost between E6 million and E8 million and take approximately eight to 12 months. The CBE says the cost and duration depend on the complexity of the investigation and cooperation from involved jurisdictions.
The recovery process was established after Parliament called for mechanisms to assist Ecsponent investors to recover their investments. The CBE appointed a tripartite task team comprising the CBE, Ministry of Finance, and Financial Services Regulatory Authority (FSRA). The team considered the movement of funds to be concealment of their true source and destination, constituting money-laundering activity. The CBE described the alleged conduct as serious criminal activity bordering on fraud and theft.
The CBE engaged senior counsel to advise on legal and regulatory options for pursuing recovery. The senior counsel brought in experts who had previously worked for South Africa's Asset Forfeiture Unit. The legal advice was that individuals involved in Ecsponent could potentially face prosecution under Eswatini's Prevention of Organised Crime Act and Money Laundering and Financing of Terrorism Act. Senior counsel also recommended exploring asset-forfeiture proceedings.
The CBE is working with the Anti-Corruption Commission (ACC), Royal Eswatini Police Service, Director of Public Prosecutions, and South Africa's National Prosecuting Authority on the matter. A three-phase forensic analysis framework has been proposed to investigate individuals and entities that allegedly benefitted directly or indirectly from Ecsponent funds. The current exercise is expected to produce a feedback report around October 2026.
The recovery process remains complex due to the potential for asset-forfeiture proceedings to be contested, particularly where assets are spread across several jurisdictions. The CBE has warned that there can be no guarantee on either the timing or quantum of any eventual recovery. Despite this, the bank remains committed to pursuing all reasonable legal avenues to maximise the prospects of recovering funds for affected investors.
More than 1,000 emaSwati lost over E340 million invested in Ecsponent Eswatini, prompting Parliament to demand an investigation. The CBE appointed Cliffe Dekker Hofmeyr (CDH) to determine whether Ecsponent conducted its business affairs in line with the Securities Act and the Financial Services Regulatory Authority Act 2010. The bank's efforts aim to provide relief to affected investors and hold those responsible accountable.
Key points
- The Central Bank of Eswatini has funded legal and forensic efforts to recover Ecsponent investors' lost funds.
- The recovery exercise focuses on assets allegedly moved to South Africa and may be extended to other jurisdictions.
- The process is complex, and the timing and quantum of any eventual recovery are uncertain.
